Ameritech in the Philippines: Failure to Adjust to Filipino Cultural norms?(Instructor's Note)

CASE DESCRIPTION The primary subject matter of this case concerns itself with cross-cultural issues and is appropriate for courses in cross-cultural management, international management, international business, and human resource management. The case has a difficulty level of three or four. The case is designed to be taught in 1-2 class hours. CASE SYNOPSIS An American computer supply company moves its operations to the Philippines in an effort to be more cost competitive but experiences cultural shock as it attempts to institute greater efficiency. The case details the struggles of the plant manager, William Dawson, as he learns the challenges of managing the "Filipino way." The case includes issues such as pakikisama, face saving, and collectivist behavior. INSTRUCTORS' NOTES Summary An American computer supply company moves its operations to the Philippines in an effort to be more cost competitive but experiences cultural shock as it attempts to institute greater efficiency. The case details the struggles of the plant manager, William Dawson, as he learns the challenges of managing the "Filipino way." The case includes issues such as pakikisama, face saving, and collectivist behavior. Target Audience and Purpose This case is written primarily for an undergraduate audience, however, the case could be used in graduate courses as well. The case deals with cross-cultural issues and is appropriate for courses in cross-cultural management, international management, and international business. The case could also be found to be useful for courses in human resource management, and specific area studies. The case is written to show how a management style in one culture isn't necessarily successful in another culture. The case also shows the need for preparation for an international assignment. In particular, the case looks at specific aspects and nuances of Filipino culture. ANALYSIS Students are asked to answer four questions at the end of the case. Additional questions could be supplied by the instructor to supplement these four questions as deemed necessary. 1. What mistakes, if any, did Bill make in his management of the plant? Bill made a number of mistakes in his management of AmeriTech in the Philippines. While an argument could be made to blame the company for sending an employee overseas with too little preparation, Bill did make the following blunders: a. Failed to do necessary preparation for his assignment. By simply relying on the stories told by his uncle about his war experiences in the Philippines, Bill did not have any understanding and appreciation of Filipino culture. He did not have cultural awareness. This became obvious by the number of mistakes which will be discussed below, including his lack of understanding of the concept of pakikisama. Pakikisama is the Tagalog word for smooth personal relationships, especially in the workplace. It relates to the overall concept of group harmony, and requires some give and take in order to maintain cohesion in a group. It is an important Filipino cultural value. b. His misinterpretation of the comments made by Millet and his reaction to her. In the Philippines it is not uncommon for people to ask, what may be considered personal questions. This is usually an attempt to get to know the other person better. Filipinos and Filipinas are very social people and like to establish social bonds with others. Whether or not Millet was making advances towards Bill is really unclear in the case, however, it is likely he overreacted to her questioning and teasing behavior. Teasing people, regardless of gender is not uncommon in the Philippines. Terminating her employment sent a strong message to the other employees and caused disharmony within the group. It also made Bill appear to be untrustworthy and unpredictable. In collectivistic societies, how one treats one member of the group could be interpreted as to how one would be treating the entire group. …